diff --git a/res/layout/user_folder.xml b/res/layout/user_folder.xml
index 548a39e..6b19603 100644
--- a/res/layout/user_folder.xml
+++ b/res/layout/user_folder.xml
@@ -19,10 +19,6 @@
     xmlns:launcher="http://schemas.android.com/apk/res/com.android.launcher"
     android:layout_width="wrap_content"
     android:layout_height="wrap_content"
-    android:paddingLeft="@dimen/folder_padding"
-    android:paddingRight="@dimen/folder_padding"
-    android:paddingTop="@dimen/folder_padding"
-    android:paddingBottom="0dp"
     android:orientation="vertical"
     android:background="@drawable/portal_container_holo">
 
@@ -32,14 +28,14 @@
         android:layout_height="wrap_content"
         android:paddingLeft="0dip"
         android:paddingRight="0dip"
-        android:paddingTop="8dip"
-        android:paddingBottom="8dip"
+        android:paddingTop="0dip"
+        android:paddingBottom="0dip"
         android:cacheColorHint="#ff333333"
         android:hapticFeedbackEnabled="false"
         launcher:widthGap="@dimen/folder_width_gap"
         launcher:heightGap="@dimen/folder_height_gap"
-        launcher:cellWidth="@dimen/workspace_cell_width"
-        launcher:cellHeight="@dimen/workspace_cell_height" />
+        launcher:cellWidth="@dimen/folder_cell_width"
+        launcher:cellHeight="@dimen/folder_cell_height" />
 
     <EditText
         android:id="@+id/folder_name"
@@ -47,7 +43,6 @@
         android:layout_height="wrap_content"
         android:layout_centerHorizontal="true"
         android:paddingTop="@dimen/folder_content_name_gap"
-        android:paddingBottom="@dimen/folder_padding"
         android:background="#00000000"
         android:hint="@string/folder_hint_text"
         android:textSize="16sp"
diff --git a/res/values/dimens.xml b/res/values/dimens.xml
index 75786eb..44da352 100644
--- a/res/values/dimens.xml
+++ b/res/values/dimens.xml
@@ -22,6 +22,8 @@
     <dimen name="workspace_width_gap">-1dp</dimen>
     <dimen name="workspace_height_gap">-1dp</dimen>
     <dimen name="workspace_max_gap">8dp</dimen>
+    <dimen name="folder_cell_width">74dp</dimen>
+    <dimen name="folder_cell_height">80dp</dimen>
     <dimen name="scroll_track_padding_left">12dp</dimen>
     <dimen name="scroll_track_padding_right">12dp</dimen>
 
@@ -84,8 +86,7 @@
     <dimen name="folder_preview_size">64dp</dimen>
     <!-- The amount that the preview contents are inset from the preview background -->
     <dimen name="folder_preview_padding">4dp</dimen>
-    <dimen name="folder_padding">18dp</dimen>
-    <dimen name="folder_content_name_gap">10dp</dimen>
+    <dimen name="folder_content_name_gap">8dp</dimen>
     <dimen name="folder_width_gap">0dp</dimen>
     <dimen name="folder_height_gap">0dp</dimen>
 </resources>
diff --git a/src/com/android/launcher2/Folder.java b/src/com/android/launcher2/Folder.java
index d3b5d41..428d7b3 100644
--- a/src/com/android/launcher2/Folder.java
+++ b/src/com/android/launcher2/Folder.java
@@ -35,12 +35,10 @@
 import android.view.MenuItem;
 import android.view.MotionEvent;
 import android.view.View;
-import android.view.View.MeasureSpec;
 import android.view.animation.AccelerateInterpolator;
 import android.view.animation.DecelerateInterpolator;
 import android.view.inputmethod.EditorInfo;
 import android.view.inputmethod.InputMethodManager;
-import android.widget.AdapterView;
 import android.widget.LinearLayout;
 import android.widget.TextView;
 
@@ -717,9 +715,8 @@
         DragLayer.LayoutParams lp = (DragLayer.LayoutParams) getLayoutParams();
 
         int width = getPaddingLeft() + getPaddingRight() + mContent.getDesiredWidth();
-        // Technically there is no padding at the bottom, but we add space equal to the padding
-        // and have to account for that here.
-        int height = getPaddingTop() + mContent.getDesiredHeight() + mFolderNameHeight;
+        int height = getPaddingTop() + getPaddingBottom() + mContent.getDesiredHeight()
+                + mFolderNameHeight;
         DragLayer parent = (DragLayer) mLauncher.findViewById(R.id.drag_layer);
 
         parent.getDescendantRectRelativeToSelf(mFolderIcon, mTempRect);
@@ -783,9 +780,8 @@
 
     protected void onMeasure(int widthMeasureSpec, int heightMeasureSpec) {
         int width = getPaddingLeft() + getPaddingRight() + mContent.getDesiredWidth();
-        // Technically there is no padding at the bottom, but we add space equal to the padding
-        // and have to account for that here.
-        int height = getPaddingTop() + mContent.getDesiredHeight() + mFolderNameHeight;
+        int height = getPaddingTop() + getPaddingBottom() + mContent.getDesiredHeight()
+                + mFolderNameHeight;
 
         int contentWidthSpec = MeasureSpec.makeMeasureSpec(mContent.getDesiredWidth(),
                 MeasureSpec.EXACTLY);